Delta 9 Cannabis Inc. (TSX:DN) said it completed an asset purchase agreement with 10552763 Canada Corp on September 6, 2022, acquiring all or substantially all of the vendor's assets relating to three Garden Variety branded retail cannabis stores.
All three stores in the previously announced deal are in Manitoba - two in Winnipeg and one in Brandon.
"We are pleased to announce the closing of another strategic retail acquisition to grow our market share across the Canadian prairies," said John Arbuthnot, CEO of Delta 9 in a statement. "Delta 9 now operates 38 cannabis retail stores, positioning us as one of Canada's largest vertically integrated cannabis retailers."
READ: Delta 9 Cannabis posts 2Q revenue growth; acquires three retail cannabis stores in Manitoba
The company paid $3,250,000 for the purchased assets with $2,925,000 satisfied through the issuance of 17,944,785 common shares of the company at a deemed price of $0.163 each. The remaining $325,000 of the purchase price will be satisfied through the issuance of 1,993,865 common shares in approximately six months, it added.
The closing of the transaction remains subject to the final approval of the TSX.
Delta 9 Cannabis is a vertically integrated cannabis company focused on bringing the highest quality cannabis products to market. The company sells cannabis products through its wholesale and retail sales channels and sells its cannabis grow pods to other businesses.
Contact the author at jon.hopkins@proactiveinvestors.com